Daily Market Analysis (SHORT TERM) Tuesday 10/23/12

Confirmation of a top with a range violation on 10/15/12 @ 112.92. Confirmation of a top with a close violation on 10/18/12 @ 112.42. Downside Targets = 110.86 – 109.36.

New lows made on current move Monday @ 109.17. Downside Targets over 110% achieved.

December Brent Crude dropped lowed on Monday during a second half day drop after being unable to sustain the early move back higher and it closed at its lowest level in 13 sessions.

Based on the price action in Brent, look for the current downward pressure to extend a bit further before finding support near the Intermediate Term price objectives of $106.50 – 107.18.

Projected Daily Range: 2.43

Projected Weekly Range: 5.35

Projected Monthly Range: 12.02

WTI Crude Oil (December):

Short Term Trends are bullish.

Confirmation of a top with a range violation on 10/22/12 @ 90.18. Confirmation of a top with a close violation on 10/19/12 @ 90.44. Downside Targets = 86.82 – 86.47

New lows made on current move Monday @ 88.57. Downside Target 75% achieved.

December WTI Crude Oil dropped to within less than $0.50 of the two-month lows from two weeks ago as it closed outside the daily Support Bollinger Band due to a slow and steady fall throughout the trading session.

Because of the overall weakness in WTI as compared to Brent, look for WTI to generate new three-month lows this week as it trades toward not only the Short-Term objectives near $86 but the Intermediate-Term support area at $82.95.

November Natural Gas dropped sharply lower in the second half of trading on Monday as non-commercial traders increased their net short position in the market as it traded to last week’s low range support zone below $3.45.

Look for an early session rally in natural gas and should it run into additional resistance near Friday’s low, traders should aggressively sell this market expecting the previous two-weeks’ low to be violated.

About the Author

Parrish Hicks Capital Research is a trading and technical analysis firm that specializes in Energy and Metal commodity futures. The two founders, Jim Parrish and Kris Hicks, have a combined 38 years’ experience in the commodity business and in 2011 accurately forecasted both $25 moves to the downside in May and July and the $25+ move to the upside in October. They also called the all-time high day for Gold on September 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. Their trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. Their expertise is focused on 16 commodities plus the comparable ETF markets. You can reach them at Jim@ParrishHicks.com and Kris@ParrishHicks.com or at www.ParrishHicks.com.